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Are you expecting a cash 2009 Income Tax Rebate from IRS this year? IRS estimates that more than 130 million households will get benefits of income tax rebate this year. IRS calls it stimulus payments. To get this income tax rebate the taxpayers must have a valid Social Security Number and he must file a 2008 federal tax return with $3000 of Income. According to IRS eligible taxpayers will receive up to $600 and $1200 for married couples, and parents will receive an additional $300 for each eligible child younger than 17yrs. Millions of retirees, disabled veterans and low-wage workers who usually are exempt from filing a tax return must file their return this year in order to receive a stimulus payment. To get your tax rebate from the IRS, be sure to file your Federal Tax Return  |
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2009 Federal Income Tax Rebates Scenarios for Married Filing Separately
In most cases, payments will range from $300 to $600 for individuals and $600 to $1,200 for joint filers. Taxpayers may receive $300 for each qualifying child. Payments could be less, depending on tax liabilty and Adjusted Gross Income. Phaseout reduction begins at $75,000 for single filers and $150,000 for joint filers.
Examples of how the Economic Stimulus Act of 2009 may affect taxpayers who are married but file separately, with or without children who qualify for the child tax credit payment:
1) Married, no children, filing separately; both have valid Social Security numbers (SSNs)
Married couple, no children. They choose to file separate tax returns, each using the Married Filing Separately (MFS) filing status. Husband has adjusted gross income (AGI) of $7,000, none of which is earned income or other qualifying income; wife has AGI of $12,000 and net income tax liability of $328.
Husband's economic stimulus payment is $0 (because he has no net income tax liability and no qualifying income)
Wife's economic stimulus payment is $328 (limited to her net income tax liability)
Note — if this couple files jointly, and their joint net income tax liability is at least $1, their economic stimulus payment would be $600.
2) Married, no children, filing separately; both have valid SSNs
Married couple, no children. They choose to file separate tax returns, each using the Married Filing Separately filing status. Husband has AGI of $7,000, including $5,000 of earned income; wife has AGI of $12,000 and net income tax liability of $328.
Husband's economic stimulus payment is $300 (he has no net income tax liability; however, he has at least $3,000 in earned income)
Wife's economic stimulus payment is $328 (limited to her net income tax liability)
Note — if this couple files jointly, their economic stimulus payment would be $600.
3) Married, no children, filing separately; both have valid SSNs
Married couple, no children. They choose to file separate tax returns, each using the Married Filing Separately filing status. Husband has AGI of $25,000; wife has AGI of $26,000. Husband and wife each have a net income tax liability in excess of $600.
Husband's economic stimulus payment is $600
Wife's economic stimulus payment is $600
Note — if this couple files jointly and their joint net income tax liability exceeds $1,200, their economic stimulus payment would be $1,200.
4) Married, no children, filing separately; both have valid SSNs
Married couple, no children. They choose to file separate tax returns, each using the Married Filing Separately filing status. Husband has AGI of $80,000; wife has AGI of $70,000. Husband and wife each have a net income tax liability in excess of $600.
Husband's economic stimulus payment is $350 (basic economic stimulus paymentof $600, phased down $250 because his AGI exceeds $75,000)
Wife's economic stimulus payment is $600
Note — if this couple files jointly, and their joint net income tax liability exceeds $1,200, their economic stimulus payment would be $1,200.
5) Married, two children, filing separately; all have valid SSNs
Married couple, two qualifying children. They choose to file separate tax returns, each using the Married Filing Separately filing status. They each claim one of the two children. Husband has AGI of $15,000 and net income tax liability of $286; wife has AGI of $25,000 and net income tax liability in excess of $600.
Husband's economic stimulus payment is $600 {basic economic stimulus payment of $300 (limited by his net income tax liability of $286, but raised to the minimum of $300), plus child amount of $300}
Wife's economic stimulus payment is $900 (basic economic stimulus payment of $600, plus child amount of $300)
Note — if this couple files jointly, and their joint net income tax liability exceeds $1,200, their economic stimulus payment would be $1,800 (basic economic stimulus payment of $1,200, plus child amount of $600).
6) Married, two children, filing separately; all have valid SSNs
Married couple, two qualifying children. They choose to file separate tax returns, each using the Married Filing Separately filing status. They each claim one of the two children. Husband has AGI of $80,000; wife has AGI of $70,000. Husband and wife each have a net income tax liability in excess of $600.
Husband's economic stimulus payment is $650 (basic economic stimulus paymentof $600, plus child amount of $300; total $900, then phased down $250 because his AGI exceeds $75,000)
Wife's economic stimulus payment is $900 (basic economic stimulus paymentof $600, plus child amount of $300)
Note — if this couple files jointly, and their joint net income tax liability exceeds $1,200, their economic stimulus payment would be $1,800 (basic economic stimulus payment of $1,200, plus child amount of $600).
7) Choosing MFS instead of MFJ, one spouse with ITIN
Married couple, no children. The wife has a valid SSN, but husband does not qualify for an SSN. Instead, the husband has an Individual Taxpayer Identification Number (ITIN) which was provided by the IRS for tax filing purposes. They are each required to file for 2008 and filed separate tax returns, both using the filing status Married Filing Separately. They each meet the income tax liability and income qualifications to receive an economic stimulus payment of the maximum amount.
Husband’s economic stimulus payment is $0 (because he does not have a valid Social Security number)
Wife’s economic stimulus payment is $600
Note — if this couple files jointly, their economic stimulus payment would be $0, because they filed jointly and one of them does not have a valid Social Security number.
Examples of how the Economic Stimulus Act of 2009 may affect taxpayers who are married but file separately, with or without children who qualify for the child tax credit payment:
1) Married, no children, filing separately; both have valid Social Security numbers (SSNs)
Married couple, no children. They choose to file separate tax returns, each using the Married Filing Separately (MFS) filing status. Husband has adjusted gross income (AGI) of $7,000, none of which is earned income or other qualifying income; wife has AGI of $12,000 and net income tax liability of $328.
Husband's economic stimulus payment is $0 (because he has no net income tax liability and no qualifying income)
Wife's economic stimulus payment is $328 (limited to her net income tax liability)
Note — if this couple files jointly, and their joint net income tax liability is at least $1, their economic stimulus payment would be $600.
2) Married, no children, filing separately; both have valid SSNs
Married couple, no children. They choose to file separate tax returns, each using the Married Filing Separately filing status. Husband has AGI of $7,000, including $5,000 of earned income; wife has AGI of $12,000 and net income tax liability of $328.
Husband's economic stimulus payment is $300 (he has no net income tax liability; however, he has at least $3,000 in earned income)
Wife's economic stimulus payment is $328 (limited to her net income tax liability)
Note — if this couple files jointly, their economic stimulus payment would be $600.
3) Married, no children, filing separately; both have valid SSNs
Married couple, no children. They choose to file separate tax returns, each using the Married Filing Separately filing status. Husband has AGI of $25,000; wife has AGI of $26,000. Husband and wife each have a net income tax liability in excess of $600.
Husband's economic stimulus payment is $600
Wife's economic stimulus payment is $600
Note — if this couple files jointly and their joint net income tax liability exceeds $1,200, their economic stimulus payment would be $1,200.
4) Married, no children, filing separately; both have valid SSNs
Married couple, no children. They choose to file separate tax returns, each using the Married Filing Separately filing status. Husband has AGI of $80,000; wife has AGI of $70,000. Husband and wife each have a net income tax liability in excess of $600.
Husband's economic stimulus payment is $350 (basic economic stimulus paymentof $600, phased down $250 because his AGI exceeds $75,000)
Wife's economic stimulus payment is $600
Note — if this couple files jointly, and their joint net income tax liability exceeds $1,200, their economic stimulus payment would be $1,200.
5) Married, two children, filing separately; all have valid SSNs
Married couple, two qualifying children. They choose to file separate tax returns, each using the Married Filing Separately filing status. They each claim one of the two children. Husband has AGI of $15,000 and net income tax liability of $286; wife has AGI of $25,000 and net income tax liability in excess of $600.
Husband's economic stimulus payment is $600 {basic economic stimulus payment of $300 (limited by his net income tax liability of $286, but raised to the minimum of $300), plus child amount of $300}
Wife's economic stimulus payment is $900 (basic economic stimulus payment of $600, plus child amount of $300)
Note — if this couple files jointly, and their joint net income tax liability exceeds $1,200, their economic stimulus payment would be $1,800 (basic economic stimulus payment of $1,200, plus child amount of $600).
6) Married, two children, filing separately; all have valid SSNs
Married couple, two qualifying children. They choose to file separate tax returns, each using the Married Filing Separately filing status. They each claim one of the two children. Husband has AGI of $80,000; wife has AGI of $70,000. Husband and wife each have a net income tax liability in excess of $600.
Husband's economic stimulus payment is $650 (basic economic stimulus paymentof $600, plus child amount of $300; total $900, then phased down $250 because his AGI exceeds $75,000)
Wife's economic stimulus payment is $900 (basic economic stimulus paymentof $600, plus child amount of $300)
Note — if this couple files jointly, and their joint net income tax liability exceeds $1,200, their economic stimulus payment would be $1,800 (basic economic stimulus payment of $1,200, plus child amount of $600).
7) Choosing MFS instead of MFJ, one spouse with ITIN
Married couple, no children. The wife has a valid SSN, but husband does not qualify for an SSN. Instead, the husband has an Individual Taxpayer Identification Number (ITIN) which was provided by the IRS for tax filing purposes. They are each required to file for 2008 and filed separate tax returns, both using the filing status Married Filing Separately. They each meet the income tax liability and income qualifications to receive an economic stimulus payment of the maximum amount.
Husband’s economic stimulus payment is $0 (because he does not have a valid Social Security number)
Wife’s economic stimulus payment is $600
Note — if this couple files jointly, their economic stimulus payment would be $0, because they filed jointly and one of them does not have a valid Social Security number.
Labels: 2008 income tax rebate, 2008 tax rebate, basics of income tax rebate, federal income tax rebate
Basic Information on the You Need for Income Tax Rebate
You've heard about it. Now find out how to get yours.
What is it? It's an economic stimulus payment that more than 130 million households will receive starting in May. It's not taxable, and it won't reduce your 2008 or 2009 refund or increase the amount you owe when you file your 2008 return.
Are you eligible? You're eligible if you have a valid Social Security Number (SSN) and show qualifying income of at least $3,000 on your federal tax return. Both people listed on a "married filing jointly" return must have valid SSNs to qualify for the payment if only one has a valid SSN, neither can receive the payment.
Can you use an ITIN instead of an SSN? Taxpayers with an Individual Taxpayer Identification Number (ITIN) instead of an SSN are not eligible to receive a stimulus payment. Both people listed on a "married filing jointly" return must have valid SSNs to qualify for the payment if only one has a valid SSN, neither can receive the payment.
Not eligible at the current time? If your circumstances change and you become eligible after you file your 2008 federal tax return, you can always file an amended return using Form 1040X. If you're not eligible this year but you become eligible next year, you can claim the economic stimulus payment next year on your 2009 tax return.
How do you get it? Just file a a federal tax return for 2008, even if you normally don't have to because your income usually doesn't meet the filing threshhold. You can't get it if you don't file.
How much will you get? The actual amount depends on the information contained on your tax return. Eligible individuals will receive between $300 and $600. Those who are eligible and file a joint return will receive a total of between $600 and $1,200. Those with children will get an additional $300 for each qualifying child. To qualify, a child must be eligible under the Child Tax Credit and have a valid Social Security number. We have various examples for you check out.
The payments phase out at certain income levels, so those with higher incomes may receive a reduced payment or even no payment.
How will you receive the payment? Be sure to choose direct deposit when you file your tax return, even if you aren't due a regular tax refund on your tax return. That way, the stimulus payment will go right to your bank account. Otherwise, we'll mail you a check.
What if some or all of your income consists of Social Security, veterans' or other benefits? The economic stimulus law allows Social Security recipients and recipients of certain veterans' benefits and Railroad Retirement benefits to count those benefits towards the qualifying income requirement of $3,000. Supplemental Security Income (SSI) does not count as qualifying income for the stimulus payment. To get the payment, you have to file a 2008 tax return using either Form 1040 or the short Form 1040A. For more information, see:
Information for Recipients of Social Security Benefits
Information for Recipients of Veteran's Benefits
FS-2008-16, Stimulus Payments: Instructions for Low-Income Workers and Recipients of Social Security and Certain Veterans Benefits.
What is it? It's an economic stimulus payment that more than 130 million households will receive starting in May. It's not taxable, and it won't reduce your 2008 or 2009 refund or increase the amount you owe when you file your 2008 return.
Are you eligible? You're eligible if you have a valid Social Security Number (SSN) and show qualifying income of at least $3,000 on your federal tax return. Both people listed on a "married filing jointly" return must have valid SSNs to qualify for the payment if only one has a valid SSN, neither can receive the payment.
Can you use an ITIN instead of an SSN? Taxpayers with an Individual Taxpayer Identification Number (ITIN) instead of an SSN are not eligible to receive a stimulus payment. Both people listed on a "married filing jointly" return must have valid SSNs to qualify for the payment if only one has a valid SSN, neither can receive the payment.
Not eligible at the current time? If your circumstances change and you become eligible after you file your 2008 federal tax return, you can always file an amended return using Form 1040X. If you're not eligible this year but you become eligible next year, you can claim the economic stimulus payment next year on your 2009 tax return.
How do you get it? Just file a a federal tax return for 2008, even if you normally don't have to because your income usually doesn't meet the filing threshhold. You can't get it if you don't file.
How much will you get? The actual amount depends on the information contained on your tax return. Eligible individuals will receive between $300 and $600. Those who are eligible and file a joint return will receive a total of between $600 and $1,200. Those with children will get an additional $300 for each qualifying child. To qualify, a child must be eligible under the Child Tax Credit and have a valid Social Security number. We have various examples for you check out.
The payments phase out at certain income levels, so those with higher incomes may receive a reduced payment or even no payment.
How will you receive the payment? Be sure to choose direct deposit when you file your tax return, even if you aren't due a regular tax refund on your tax return. That way, the stimulus payment will go right to your bank account. Otherwise, we'll mail you a check.
What if some or all of your income consists of Social Security, veterans' or other benefits? The economic stimulus law allows Social Security recipients and recipients of certain veterans' benefits and Railroad Retirement benefits to count those benefits towards the qualifying income requirement of $3,000. Supplemental Security Income (SSI) does not count as qualifying income for the stimulus payment. To get the payment, you have to file a 2008 tax return using either Form 1040 or the short Form 1040A. For more information, see:
Sample Form 1040A
Those who normally don't have to file a tax return and can use the short form for the stimulus payment can see an example of how to fill out Form 1040A.
Learn More about the Economic Stimulus Payments
For more information, check out our:
Warning Scam Artists Are Calling Taxpayers about the Stimulus Payments
If someone claiming to be from the IRS calls or e-mails you about the payments and asks you for a Social Security, bank account or credit card number, it's a scam. The scammers are trying to get your personal and financial information so they can empty your bank account, run up charges on your credit card and more. Find out more see IR-2009-11, IRS Warns of New E-Mail and Telephone Scams Using the IRS Name; Advance Payment Scams Starting.
Source : irs.gov
Labels: basics of income tax rebate, income tax rebate, income tax rebate information
Get Your Federal Income Tax Rebate Check Now
Why Do Your Taxes - To Get IRS Income Tax Rebate?
You should do you taxes online now because you will only be eligible to get IRS Stimulus, if you have filed your 2008 federal tax return. The amount of tax rebate you received will be based on information contained in your tax return. Taxpayers who file their taxes after April 15 could get their rebates months after those who file on time.